Correlation Between AVX and Exactus
Can any of the company-specific risk be diversified away by investing in both AVX and Exactus at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AVX and Exactus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVX Corporation and Exactus, you can compare the effects of market volatilities on AVX and Exactus and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AVX with a short position of Exactus. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVX and Exactus.
Diversification Opportunities for AVX and Exactus
Pay attention - limited upside
The 3 months correlation between AVX and Exactus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AVX Corp. and Exactus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exactus and AVX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AVX Corporation are associated (or correlated) with Exactus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exactus has no effect on the direction of AVX i.e., AVX and Exactus go up and down completely randomly.
Pair Corralation between AVX and Exactus
If you would invest (100.00) in Exactus on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Exactus or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVX Corp. vs. Exactus
Performance |
| Timeline |
| AVX Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exactus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AVX and Exactus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVX and Exactus
The main advantage of trading using opposite AVX and Exactus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVX position performs unexpectedly, Exactus can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Exactus will offset losses from the drop in Exactus' long position.The idea behind AVX Corporation and Exactus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |